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EssilorLuxottica SA
(OTC:ESLOY)
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Rating:71Outperform
Price Target:
$112.00
▲(20.61% Upside)
Action:Reiterated
Date:10/29/26
The score is driven primarily by solid financial fundamentals (growth with dependable cash generation, though with softer margins and higher leverage) and a constructive earnings outlook with strong H1 performance and reiterated guidance. Offsetting these positives are stretched technical conditions (overbought signals and still below the 200-day average) and a premium valuation (P/E ~33.7) that increases sensitivity to any slowdown.
Positive Factors
Sustained Revenue Growth
Broad-based revenue growth indicates continued demand for the company’s eyewear, lenses and services across multiple geographies. Regional expansion, especially in Asia Pacific, supports durable scale benefits and reduces reliance on any single market over the next several quarters.
Negative Factors
Rising Leverage
The increase in debt relative to equity reduces financial flexibility and makes the company more sensitive to interest rates and operating setbacks. Although the balance sheet remains generally stable, a continued upward debt trajectory could constrain investment and capital allocation.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
Broad-based revenue growth indicates continued demand for the company’s eyewear, lenses and services across multiple geographies. Regional expansion, especially in Asia Pacific, supports durable scale benefits and reduces reliance on any single market over the next several quarters.
Read all positive factors
EssilorLuxottica SA (ESLOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$92.42B
Dividend Yield2.33%
Average Volume (3M)6.81K
Price to Earnings (P/E)33.0
Beta (1Y)0.89
Revenue Growth15.30%
EPS Growth10.92%
CountryUS
Employees203,791
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)2.73
Shares Outstanding928,495,100
10 Day Avg. Volume0
30 Day Avg. Volume6,814
Financial Highlights & Ratios
PEG Ratio-8.26
Price to Book (P/B)3.18
Price to Sales (P/S)4.34
P/FCF Ratio34.22
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue3.50
Enterprise Value/Gross Profit5.75
Enterprise Value/Ebitda15.11
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.09
Revenue Forecast (FY)$33.82B
EssilorLuxottica SA Business Overview & Revenue Model
Company Description
EssilorLuxottica S.A., established in Paris, France, in 1849, is a prominent global entity in the optical industry. The company specializes in the creation, production, and worldwide distribution of a diverse range of vision products, including op...
How the Company Makes Money
EssilorLuxottica makes money by selling eyewear and vision-care products and services through a vertically integrated model that spans manufacturing, wholesale distribution, and direct retail.
Key revenue streams include:
1) Prescription lenses a...
EssilorLuxottica SA Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 17, 2027
Earnings Call Sentiment Positive
The call presented a predominately positive operational and financial picture: solid double-digit-like improvements in profitability metrics, strong free cash flow, robust regional momentum (notably Asia Pacific), and clear product and strategic progress in wearables, myopia management and medtech. Management acknowledged localized slowdowns (key accounts in North America, flat France, some EMEA licensing softness), currency and tariff timing uncertainties, and a demanding H2 comparison base. Overall the positives (revenue growth, margin recovery, record cash generation, product pipeline and strategic partnerships) materially outweigh the noted operational and timing risks.Positive Updates
Solid Top-Line Growth
Group revenues +9.7% at constant currency (H1 2026) and +5.7% at current rates; Q2 revenue +8.7% at constant currency and +7.2% at current exchange rates, broadly aligned with medium-term guidance.
Negative Updates
Currency Headwinds and Exchange Variance
Current-rate growth lags constant-currency growth (H1: 5.7% vs 9.7%); U.S. dollar devalued ~2.5% against euro in Q2 causing a 1.5 ppt gap reduction but currency exposure remains a modeling risk and could affect H2 depending on FX moves.
Read all updates
Q2-2026 Updates
Positive
Negative
Solid Top-Line Growth
Group revenues +9.7% at constant currency (H1 2026) and +5.7% at current rates; Q2 revenue +8.7% at constant currency and +7.2% at current exchange rates, broadly aligned with medium-term guidance.
Read all positive updates
Company Guidance
Management reiterated its medium‑term guidance of "solid revenue growth at constant currency," noting H1 revenues +9.7% cc (+5.7% reported) and Q2 +8.7% cc (+7.2% reported), while warning of a demanding H2 comparison but expressing confidence in delivering the financial ambition; by region Q2 was North America +7.2% cc, EMEA +8% cc, Asia‑Pacific +17% cc and Latin America +6.7% cc, with the core business up mid‑single‑digit and wearables nearly doubling in Q2 (analyst‑estimated contribution ≈4pp to Q2 growth). Profitability guidance pointed to gross profit accretion (+10bps), operating profit up 80bps at constant currency (50bps reported), net profit up 50bps cc (20bps reported) and operating expenses improving ~80bps of revenue despite continued R&D/medtech investments; free cash flow guidance is underpinned by €1.067bn generated in H1 (strongest in five years, >€100m ahead of prior year). Management also highlighted a net +60bps tariff benefit in H1 (with possible additional refunds in H2), a reduced constant/reported gap to 1.5pp after a ~2.5% USD devaluation in Q2 (potential H2 currency tailwind), and expects continued margin progression, controlled cost/inflation and revenue support from initiatives such as Stellest in ~11,000 US doors, myopia solutions (+25% in H1, >20% quarter‑on‑quarter), wearable rollouts and the Applied Materials partnership.EssilorLuxottica SA Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 29.47B | 28.49B | 26.51B | 25.39B | 24.49B | 19.82B |
| Gross Profit | 17.94B | 17.25B | 16.81B | 16.05B | 15.59B | 12.28B |
| EBITDA | 6.83B | 6.60B | 6.55B | 6.21B | 6.10B | 4.63B |
| Net Income | 2.52B | 2.22B | 2.36B | 2.29B | 2.15B | 1.45B |
Balance Sheet | ||||||
| Total Assets | 65.03B | 63.87B | 64.26B | 60.52B | 60.56B | 59.41B |
| Cash, Cash Equivalents and Short-Term Investments | 1.93B | 3.54B | 2.25B | 2.56B | 1.96B | 3.29B |
| Total Debt | 15.31B | 14.40B | 13.22B | 11.66B | 12.20B | 13.02B |
| Total Liabilities | 25.12B | 24.39B | 23.26B | 21.63B | 22.41B | 23.54B |
| Stockholders Equity | 39.20B | 38.87B | 40.38B | 38.24B | 37.45B | 35.06B |
Cash Flow | ||||||
| Free Cash Flow | 3.95B | 3.62B | 3.35B | 3.33B | 3.21B | 3.52B |
| Operating Cash Flow | 5.44B | 5.08B | 4.87B | 4.86B | 4.78B | 4.54B |
| Investing Cash Flow | -2.94B | -2.53B | -3.62B | -1.72B | -2.62B | -8.06B |
| Financing Cash Flow | -3.29B | -932.68M | -1.65B | -2.42B | -3.58B | -2.04B |
EssilorLuxottica SA Technical Analysis
Positive
92.86
Price Trends
87.56
Positive
92.45
Positive
106.77
Negative
Market Momentum
4.10
Negative
66.50
Neutral
90.57
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESLOY, the sentiment is Positive. The current price of 92.86 is above the 20-day moving average (MA) of 88.51, above the 50-day MA of 87.56, and below the 200-day MA of 106.77, indicating a neutral trend. The MACD of 4.10 indicates Negative momentum. The RSI at 66.50 is Neutral, neither overbought nor oversold. The STOCH value of 90.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ESLOY.
EssilorLuxottica SA Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $92.42B | 33.00 | 6.39% | 2.33% | 15.30% | 10.92% | |
65 Neutral | $7.29B | -65.87 | -1.73% | ― | 8.88% | 63.73% | |
56 Neutral | $1.27B | 315.50 | 1.08% | ― | 51.30% | ― | |
54 Neutral | $11.47B | 20.59 | 6.88% | 0.02% | 4.73% | 43.89% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $50.37M | -9.91 | -23.92% | ― | 65.16% | 45.07% | |
43 Neutral | $7.24M | -0.62 | -88.90% | ― | 72.50% | 58.34% |
* Healthcare Sector Average
ESLOY
EssilorLuxottica SA
99.46
-80.59
-44.76%
COO
Cooper Co
60.34
-9.57
-13.69%
STAA
Staar Surgical
25.24
-0.63
-2.44%
POCI
Precision Optics Corporation
4.59
0.29
6.74%
BLCO
Bausch + Lomb Corporation
20.40
5.46
36.55%
LUCY
Innovative Eyewear, Inc.
0.83
-0.90
-52.02%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.